Novacyt: Half year 2021 results

Solid underlying financial performance and well-positioned for continued growth

 

Paris, France and Camberley, UK – 27 September 2021 – Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces its unaudited results for the half year ended 30 June 2021.

 

Graham Mullis, Group CEO of Novacyt, commented:

“During 2021, Novacyt has remained at the forefront in its response to the constantly changing global COVID-19 pandemic. We have launched 18 new COVID-19 products since the beginning of 2021 and we expect Novacyt to continue to play a major role in COVID-19 testing well into 2022. We also remain focused on strengthening our long-term position and executing against our strategy by building our product and instrument platforms and expanding our commercial infrastructure for growth beyond COVID-19.

 

“As my last results as CEO of Novacyt, I would like to take this opportunity to say it has been a privilege and an honour to lead the Company and to work alongside so many talented people who have worked tirelessly in the face of the unprecedented pandemic. I believe Novacyt is better positioned today than it has ever been, based on the capabilities it has developed over the last few years. I am immensely proud of what we have achieved, and I am confident the Company will continue to grow and cement its place as a leading global diagnostics player.”

 

Financial highlights

  • Group consolidated unaudited revenue of £54.0m (H1 2020: £63.3m) excluding £40.8m of H1 DHSC revenues whilst the contract dispute continues
  • Non-DHSC revenue increased by 20% to £54.0m (H1 2020: £44.8m) supported by growing UK private testing market
  • The Group has booked exceptional cost of sales of £35.8m in connection with the DHSC contract dispute to write down inventory and terminate supply agreements that the Company had built in anticipation of further DHSC demand and to book the cost of products supplied to the DHSC in 2021 that have not been paid for
  • Group gross margin before exceptional items was 71%, delivering a gross profit of £38.0m. After the exceptional DHSC related cost of sales, gross margin drops to 4%, delivering a gross profit of £2.3m
  • Group adjusted EBITDA of £23.2m before exceptionals (H1 2020: £43.1m)
  • Operating loss of £13.6m compared to a profit of £42.2m in H1 2020, driven by the one-time exceptional cost of sales and stock write-down
  • Loss after tax of £12.7m compared to a profit of £35.1m in H1 2020
  • Cash at 30 June 2021 of £77.2m with zero debt

 

 

£'000

H1 2021

Before Exceptionals

H1 2021

After

Exceptionals

H1 2021

Total

Group

H1 2020

Total

Group

         

Revenue

53,950

-

53,950

63,257

         

Gross profit

38,044

(35,770)

2,274

52,673

Gross profit %

71%

 

4%

83%

         

EBITDA

23,170

(35,770)

(12,600)

43,146

EBITDA %

43%

 

-23%

68%

         

Recurring operating (loss) / profit

22,232

(35,770)

(13,538)

42,540

         

Operating (loss) / profit

22,169

(35,770)

(13,601)

42,236

         

(Loss) / profit after tax attributable to the owners

16,299

(28,974)

(12,675)

35,131

 

 

Operational highlights

·       Rapid development and launch of 18 new assays to support laboratories, clinicians, and private testing for COVID-19 since the beginning of 2021

  • Launch and continued expansion of PCR genotyping portfolio, SNPsig®, to detect variants of SARS-CoV-2, including VariPLEX™ to detect six key mutations in a single test
    • Portfolio included in the NHS England Framework for detecting Variants of Concern
  • Expansion of PROmate® COVID-19 PCR portfolio for workflow efficiency in a near-to-patient setting
  • Expansion of genesig® COVID-19 PCR portfolio
  • Expansion of PathFlow® LFT portfolio with antibody and antigen tests for COVID-19 
  • Launch of VersaLab™ mobile processing laboratories and VersaLab™ Portable to expand near-patient testing opportunities in private sector testing
  • Inclusion in PHE National Framework Agreement, resulting in a new contract with the DHSC for the supply of PROmate® COVID-19 tests to the NHS (post period)
  • Secured new contracts with WHO and UNICEF for the supply of COVID-19 products
  • Strengthened executive team and commercial operations to support future growth
    • Appointment of James McCarthy as Chief Financial Officer
    • Anthony Dyer assumed a new role of Chief Corporate Development Officer to focus on business development
    • Appointment of Guillermo Raimondo to newly formed role of Chief Commercial Officer to lead global commercial operations
    • Appointment of US General Manager and set-up of Novacyt US Inc
  • David Allmond appointed as Chief Executive Officer, effective from 18 October 2021, following Graham Mullis’ decision to retire (post period)

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

Contacts

Novacyt SA

Graham Mullis, Chief Executive Officer

James McCarthy, Chief Financial Officer

+44 (0)1276 600081

 

SP Angel Corporate Finance LLP (Nominated Adviser and Broker)

Matthew Johnson / Charlie Bouverat (Corporate Finance)

Vadim Alexandre / Rob Rees (Corporate Broking)

+44 (0)20 3470 0470

 

Numis Securities Limited (Joint Broker)

Freddie Barnfield / James Black

+44 (0)20 7260 1000

 

Allegra Finance (French Listing Sponsor)

Rémi Durgetto / Yannick Petit

+33 (1) 42 22 10 10

r.durgetto@allegrafinance.com / y.petit@allegrafinance.com

 

FTI Consulting (International)

Victoria Foster Mitchell / Alex Shaw

+44 (0)20 3727 1000

victoria.fostermitchell@fticonsulting.com / Alex.Shaw@fticonsulting.com 

 

FTI Consulting (France)

Arnaud de Cheffontaines

+33 (0)147 03 69 48

arnaud.decheffontaines@fticonsulting.com

 

About Novacyt Group

The Novacyt Group is an international diagnostics business generating an increasing portfolio of in vitro and molecular diagnostic tests. Its core strengths lie in diagnostics product development, commercialisation, contract design and manufacturing. The Company's lead business units comprise of Primerdesign and Lab21 Products, supplying an extensive range of high-quality assays and reagents worldwide. The Group directly serves microbiology, haematology and serology markets as do its global partners, which include major corporates.

 

For more information, please refer to the website: www.novacyt.com

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